NOW Sven-Goran Eriksson knows why he is being paid so much to revive the England team.

And now is exactly the time that English football needs him to be earning it.

England's 2-0 defeat by Holland, albeit in a friendly in which there were 19 substitutions, represented a large step back in time for the national side.

Though cautioning against overblown expectation, Eriksson may have spoken of a "beautiful future" for the side in the build-up to last night's game after five consecutive victories.

However, it is the here and now he must worry about, with only just over two weeks to put matters right before the vital World Cup qualifier in Germany on September 1.

For just as England needed to be looking forward to the match in Munich, it was clear that faults present in their lame defeat against the Germans at home last autumn have not yet all been blown away by the Swede.

Eriksson may have rebuilt the squad, ensured a vibrant spirit, organised the tactics and created a team out of a collection of individuals in just seven months.

But his job is far from over, as this wake-up call proved only too vividly.

Just as at Wembley in Kevin Keegan's final game, there were problems in squandering possession with alarming regularity, being unable to string together a collection of passes and failing to bring the ball out of defence.

Indeed, there was even a defender playing somewhat out of position in an experimental central midfield holding role, only this time it was Jamie Carragher struggling to make his mark rather than Gareth Southgate.

Holland set out their stall, much as Sir Alex Ferguson intends to do this season, with Ruud van Nistelrooy up front, two wingers offering width and another striker dropping off to create space and help dominate midfield.

England were either left bemused by the tactical challenge, with Carragher marking Patrick Kluivert and thereby leaving Paul Scholes exposed, or simply outplayed.

Steven Gerrard's competitive influence was patently missed in midfield, while Rio Ferdinand and Sol Campbell are needed at the back, and Michael Owen - rested until the second half - remains the one real hope up front.

Indeed, that four of England's most influential players were missing in the first half offers considerable hope for Munich, but only if they have recovered by then.

Eriksson will therefore be relying heavily on the medical bulletins emanating from Anfield, Elland Road and Highbury over the next week or so, while also needing Robbie Fowler to regain match-sharpness.

He is already awaiting scan results today from keeper David James and defender Martin Keown, who were both taken off with knee injuries shortly after half-time last night.

However, even after Mark van Bommel's thunderous drive and van Nistelrooy's predatory finish had exposed holes in his team, Eriksson insisted there was no panic in the camp.

"We lost a game, but if we were worried about that, it would be very stupid because we are a good team and will do much better than this next time," he declared.

"We showed them too much respect, played very deep and very few of our players were at their sharpest in the first half."

The opening half was nevertheless when Eriksson's supposedly strongest fit side were in action, only for Fowler to show rustiness after being dropped by Liverpool as a disciplinary measure for the Charity Shield.

Andy Cole made only marginally more impact, albeit when deprived of much service, and while Owen's name is already on the team-sheet, there must be a large question-mark next door to it now.

When Owen arrived at half-time, England were already 2-0 down and the Dutch clearly deserved their advantage.

After van Nistelrooy had been denied by Nigel Martyn's fine early save, England survived a strong penalty appeal when Ashley Cole bundled over Phillip Cocu.

They flickered momentarily into life, with Gary Neville's drive being tipped over, but then Mark van Bommel took aim from 35 yards out and arrowed an unstoppable, curling drive into the top corner.

Martyn had no chance but should have done better than parrying an effort by Zenden a minute later, with van Nistelrooy reacting first to guide the rebound into the net before then sending an audacious chip against the bar.

Although Carragher, who played much better at right-back in the second-half, meanwhile struggled manfully in a central role, Owen Hargreaves was left marginalised out on the left flank and had little chance to impress.

"I couldn't expect Hargreaves to be a leader but I don't regret playing him. It was not too early in his career but I don't think his best position is left-wing," admitted Eriksson.

"It was good to let him play though and good for Andy Cole to play more than the others. There will be no panic at all."

James' fine save denied Jimmy Floyd Hasselbaink shortly after the break, but England's only meaningful threat came in the final minute when Owen blazed over the bar from 12 yards out.

Eriksson nevertheless insisted: "We want to play in the World Cup one way or the other and the world is not finished.

"It's good in one way that there are only two weeks until the next match and not four or five months.

"It is very bad to lose but we learned something and hopefully we can use that against Germany."